Property Tax and Value Workshop for State and Local Officials. December 13, 2012, 6:00 pm

Transcription

1 Property Tax and Value Workshop for State and Local Officials December 13, 2012, 6:00 pm

2 Property Valuation Cycle The Assessor s Office works throughout the year to estimate the market value and determine the classification (use) of each property on the January 2 nd assessment date each year.

3 March 15 June 30 Appeals Period May 1 October 15 Field Inspections Property Valuation Cycle August January 31 Establish Market Value October 15 January 15 New Construction Reviews

4 May 1 October 15 FIELD INSPECTIONS 4

5 Who are the property appraisers and what training do they have? Washington County appraisers are professional appraisers certified and licensed by the State Board of Assessors Certification requires experience & continuing education University of MN, IAAO, MAAO Other organizations (Appraisal Institute, Kaplan) 5

6 What do the appraisers look for when reviewing a property? Unique characteristics that contribute to the total value Interior & Exterior features: Document the amenities Determine quality & condition of each property Location & neighborhood features 6

7 Minnesota state law requires properties to be reviewed at least once every 5 years Each community has a rotating appraisal schedule to ensure compliance. Residential Notification Revaluation Announcement - postcards Commercial Notification Requests for income/expense info Conducted each year by use 7

8 Additional reviews may be conducted: New construction (permits) Property valuation appeals Anytime the assessor may need to verify information in order to assure an accurate assessment 8

9 Number of Properties Reviewed (Assessment years ) 9

10 October 15 January 15 NEW CONSTRUCTION REVIEWS 10

11 Residential New Starts Municipality Ay2012 (2011 start) Municipality Ay2012 (2011 start) Birchwood 1 Hastings 1 Lake St Croix Beach 1 Lakeland 1 May Twp 1 Grant 2 Afton 5 Scandia 5 West Lakeland Twp 6 Denmark Twp 7 Mahtomedi 12 Bayport 13 Baytown Twp 14 Oakdale 21 Lake Elmo 22 Forest Lake 24 Stillwater City 44 Hugo 46 Cottage Grove 53 Woodbury

12 All New Construction Reviews 12

13 August January 31 ESTABLISH MARKET VALUE 13

14 Three Approaches to Value: Cost Approach: Estimate of depreciated reproduction or replacement cost of the improvements plus land value Income : Values the revenue producing capabilities of a property. This method reviews market data derived from properties to determine income, expenses, vacancy rates and capitalization rates. A net operating income is capitalized into a value which includes the land V=I/R Sales Comparison: Estimates the value of a property by statistically analyzing the sale prices of similar property or sales of a group of properties mass appraisal 14

15 What is mass appraisal and how does it differ from a fee (bank) appraisal? Fee Appraisal Purpose of appraisal is to obtain mortgage, refinancing, or insurance. Effective date of a fee appraisal can occur at any time. One property is valued at a time using one of the approaches to value just discussed - cost, income and the sale comparison approach. 3-6 properties are chosen to compare to the subject property. The sales comparables are typically limited to those that have occurred within the last three to six months. 15

16 Mass Appraisal Purpose of appraisal is to determined value for taxation purpose. Effective date of appraisal is the January 2 nd assessment date. Nearly 90,000 residential properties are valued each year by a relatively small staff of appraisers. All qualified sales that take place during a 12 month specific (October 1 September 30) are used to establish uniform rates used in our Computer Aided Mass Appraisal (CAMA) system. This valuation method is essentially an automated application of the sales comparison approach. Statistical analysis is used to determine equitability among parcels within the county, within each community and down to the neighborhood level. 16

17 The mass appraisal process values a large group of homes in a defined area (market area, community, neighborhood) by analyzing sales of similar property and applying the results to homes that have not sold. 17

18 Statistical Tools Used to Measure Accuracy Assessment Ratios The sales ratio shows the relationship between the EMV and a property s sale price The median ratio of a group of sales helps determine the percent of change needed Dept. of Revenue sets the level of assessment to be between 90% and105% Washington County sets a 95% target median ratio for all communities in the county 18

19 Coefficients of Dispersion (COD) Measures uniformity of the assessment Indicates how tightly the sales ratios are clustered around the median ratio Lower rate of dispersion indicates a more uniform & fair distribution of value Goal of a good assessment is a COD of 10 to 20 <10 is excellent >20 will mean an assessment review by the Dept. of Revenue 19

20 Price Related Differential (PRD) Measures the equality between the assessment of high & low valued property A PRD range of.98 to 1.03 indicates most properties are treated equally regardless of value 20

21 March June 30 APPEALS PERIOD 21

22 Valuation notices are mailed around March 15 th of each year Includes value, classification, and a comparison of the current year and prior year s assessment 22

23 We encourage all property owners with concerns regarding their valuation or classification to call their appraiser. More formal appeal options are listed on each valuation notice. 23

24 The Local Board & Open Book meeting schedule is posted on our website in March Meetings must be posted & published by each community no later than 10 days prior to each meeting The County Assessor s Office conducts four (4) regional Open Book Meetings: Stillwater Cottage Grove Woodbury Oakdale 24

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26 washington.minnesotaassessors.com Appraisal Topics Appraisal Reports Parcel Info Search Sale Search Contact Information 26

27 July 1 VALUES ARE SET & TURNED OVER TO TAATION 27

28 Assessor s Estimated Market Value (EMV) vs. Taxable Market Value (TMV) Property Tax is a 2 year cycle value determined by Assessor on January 2 is used for taxes payable the following year Property Tax is ad valorem = according to value Value that is actually used in calculating property taxes is different than EMV Certain Property Tax Programs provide for Exemptions/Exclusions/Deferrals of market value that exclude value from taxation and shift the tax burden to other properties 28

29 Reductions from Estimated Market Value to arrive at Taxable Market Value Green Acres Deferral Rural Preserve Deferral Open Space Deferral Plat Law Exclusion This Old House Exclusion Disabled Veterans Exclusion Mold Damage Exclusion Homestead Exclusion 29

30 Green Acres Deferral Applies to class 2a agricultural property that is facing increasing values due to pressures not related to the agricultural value of the land. This value is determined by looking at what comparable agricultural land is selling for in areas where there is no development pressure. The taxes on the higher value are deferred until the property is sold, transferred, withdrawn or no longer qualifies for the program. Properties leaving the program are required to pay back the last three years of deferment. 30

31 Rural Preserve Deferral Applies to class 2b rural vacant land that is part of a farm homestead or that had previously been enrolled in Green Acres, if it is contiguous to agricultural land enrolled in Green Acres. This value may not exceed the Green Acres value for tilled lands. The taxes on the higher value are deferred so long as the property qualifies. Properties leaving the program are required to pay back the last three years of deferment. 31

32 Open Space Deferral The Minnesota Open Space Property Tax Law recognizes that development pressures for residential, commercial, or other uses can jeopardize the supply of private outdoor, recreational, open space, and park lands whose valuations have increased in excess of their open space uses. This law allows owners of open space property to apply for the deferment of the market value that exceeds the open space use value, and its associated taxes. Properties leaving the program are required to pay back the last seven years of deferment. 32

33 Plat Law Exclusion For land that has been recently platted (divided into individual lots) but not yet improved with a structure, the increased market value due to platting is phased in over three years. If construction begins, the lot will be assessed at full market value in the next assessment. 33

34 This Old House Exclusion This program expired with the 2003 assessment. However, property may still be receiving the value exclusion until Qualifying properties with improvements that increased the estimated market value by $5,000 or more were eligible to have some of the value deferred for a maximum of 10 years. After this time, the deferred value is phased in. 34

35 Disabled Veterans Exclusion Qualifying disabled veterans may be eligible for a valuation exclusion on their homestead property: Veterans with 70% to 100% serviceconnected disability are eligible for a market value exclusion of 150,000. Veterans with total (100%) and permanent service-connected disability are eligible for a market value exclusion of 300,

36 Mold Damage Exclusion For homestead properties damaged by mold. The taxpayer must file an application. The cost of the repair must be at least $20,000. Upon completion of the work the county board must grant a reduction in market value equal to the cost of repairing the mold damage. 36

37 Homestead Exclusion Applies to residential homesteads and to the house, garage, and one acre of land on agricultural homesteads. The exclusion is 40% of the value up to 76,000, with a maximum exclusion of 30,400, and then decreases by 9% for value over 76,000. The exclusion phases out to 0 for properties valued at 413,800 or more. (exclusion implemented in 2012, prior to that Homestead was a credit) 37

38 Reductions from Estimated Market Value to arrive at Taxable Market Value Estimated Market Value Green Acres Deferral Rural Preserve Deferral Open Space Deferral Plat Law Exclusion This Old House Exclusion Disabled Veterans Exclusion Mold Damage Exclusion Homestead Exclusion = Taxable Market Value However, Taxable Market Value is still not the base value for calculating property taxes 38

39 Classification Use of a property determines its classification Classification provides for different types, or classes, of property to be taxed at different rates. The Legislature sets a class rate for each property classification. Class rate is applied to TMV and results in Tax Capacity : Taxable Market Value x Class Rate = Tax Capacity Most taxes are based on tax capacity. This structure allows different types of property to be taxed at different levels and determines who pays what share of the total property tax bill 39

40 Class Rate Examples Residential Homestead & Non-Homestead First 1.00% Over 1.25% Agricultural Land Homestead First 0.50% Over 1.00% Agricultural Land Non-Homestead 1.00% Commercial/Industrial/Public Utility First 1.50% Over 2.00% 40

41 Example of Tax Capacity Calculation on 250,000 Residential Homestead vs. Commercial/Industrial Residential Homestead EMV 250,000-14,700 Homestead Exclusion = TMV 235,300 x 1.00% = 2,353 Tax Capacity Commercial-Industrial 150,000 x 1.50% = 2, ,000 x 2.00% = 2, ,000 EMV/TMV 4,250 Tax Capacity 41

42 Multiple Tax Bases Tax Capacity is the basis for most taxes. Referendum Market Value is the basis for some referendum levies, such as County LWLP, School operating levies. Does not apply to farm land, cabins Reduced rate on value with a class rate < 1.0% Does apply to homestead exclusion value State Tax Base Cabins (reduced rate on 1 st 76,000) Commercial/Industrial/Utility Does not apply to electric generating machinery 42

43 Classification Pay 2013 Class Rate/Tax Base Table 1a Residential Homestead first 500,000 over 500,000 Class Rate 1.00% 1.25% 43 Tax Capacity Fiscal Disparity State Tax Market Value Tax 1b Blind/Disabled homestead first 50, % 1c Commercial seasonal-residentialrecreational-under 250 days and includes homestead first 600, ,000 2,300,000 over 2,300,000 1d Migrant housing first 500,000 over 500,000 2a Agricultural Homestead House, Garage, One Acre: first 500,000 over 500,000 Remainder 2a Productive or 2b Rural Vacant: first 1,290,000 over 1,290, % 1.00% 1.25% 1.00% 1.25% 1.00% 1.25% 0.50% 1.00%

44 Classification Class Rate Tax Capacity Fiscal Disparity State Tax Market Value Tax 2a Agricultural Non-homestead Productive 1.00% 2a Agricultural Non-homestead property owned by Farming Entities with shareholders or members utilizing unused 1 st tier Agricultural Homestead Value 0.50% 2b Rural Vacant Land Non-homestead 1.00% 2b Rural Vacant Land Non-homestead property owned by Farming Entities with shareholders or members utilizing unused 1 st tier Agricultural Homestead Value 0.50% 2c Managed Forest 0.65% 2d Private Airport 1.00% 2e Unmined Commercial Aggregate Deposit 1.00% 3a Commercial-Industrial and Public Utility first 150,000 over 150,000 3a Electric generating public utility machinery 1.50% 2.00% 2.00% 3a All other public utility machinery 2.00% 44

45 Classification 4a Apartment (four or more units, including private for-profit hospitals) 4b(1) Residential Non Homestead one to three units that does not qualify for class 4bb Class Rate Tax Capacity Fiscal Disparity State Tax Market Value Tax 1.25% 1.25% 4b(2) Unclassified manufactured homes 1.25% 4b(3) Farm non-homestead containing more than one residence but fewer than four along with the acre(s) and garage(s) 4b(4) Residential non-homestead not containing a structure 4bb(1) Residential non-homestead single unit first 500,000 over 500,000 4bb(2) Single house, garage, one acre on ag non-homestead land first 500,000 over 500, % 1.25% 1.00% 1.25% 1.00% 1.25% 45

46 Classification Class Rate Tax Capacity Fiscal Disparity State Tax Market Value Tax 4c(1) Seasonal residential recreational commercial first 500,000 over 500, % 1.25% 4c(2) Qualifying golf courses 1.25% 4c(3) Nonprofit community service oriented organization (i) Non-Revenue (ii) Donations 1.50% 1.50% 4c(4) Post secondary student housing 1.00% 4c(5)(i) Manufactured home park 1.25% 4c(5)(ii) Manufactured home park cooperative over 50% shareholder occupied 50% or less shareholder occupied 0.75% 1.00% 4c(6) Metro non-profit recreational property 1.25% 4c(7) Certain leased or privately owned non-commercial aircraft storage hangars (includes land): on leased land 4c(8) Certain leased or privately owned non-commercial aircraft storage hangars (includes land): on private land 1.50% 1.50% 46

47 Classification Class Rate Tax Capacity Fiscal Disparity State Tax Market Value Tax 4c(9) Bed and Breakfast up to 5 units 1.25% 4c(10) Seasonal Restaurant on a Lake 1.25% 4c(11) Qualifying Marinas: first 500,000 over 500,000 4c(12) Non-Commercial Seasonal residential recreational (cabin) first 76,000 76, ,000 over 500,000 4d Qualifying low income land and buildings 1.00% 1.25% 1.00% 1.00% 1.25% 40% 0.75% 5(1) Unmined or low recovery iron ore 2.00% 5(2) All other property not included in any other class 2.00% 47

48 Tax Bases The tax base values are calculated for each parcel The tax base values calculated for individual parcels are summed to determine the total tax base value of each taxing authority. An individual parcel s tax liability is based on what percentage the parcel s value is of the taxing authority total. This is done by calculating a tax rate. 48

49 Adjustments to Tax Capacity Tax Base There are special provisions for certain programs to use a portion of tax capacity for other purposes: Tax Increment Financing Districts Fiscal Disparities Power Line Credit Since the tax capacity is being used for other purposes, it is not available to the county/citytown/school/special taxing districts to fund local levies, therefore the tax capacity value dedicated to those programs must be subtracted when determining the local tax capacity used to calculate the tax rate. 49

50 Adjustments to Tax Capacity Base Tax Increment Financing Districts TIF is an economic development tool Captures tax on increase in value Value captured by TIF is used to fund project development costs in the TIF district and so is not available to fund county/city-town/school/special taxing district levies. Value captured by TIF is subtracted when determining tax capacity value used to calculate the local tax rate. 50

51 Adjustments to Tax Capacity Base Fiscal Disparities Tax base sharing program enacted in 1971 Each taxing authority shares 40% of C/I growth since 1971 with metro wide pool. Value in pool is redistributed on a formula based on relative fiscal capacity (market value per capita). A portion of each tax authority s levy is funded by the pool and reduces the levy to the local taxpayers. Countywide, net contributor for the first time in Some jurisdictions within the county are still net gainers. 51

52 Adjustments to Tax Capacity Base Fiscal Disparities Value shared/contributed to the fiscal disparity pool is not available to fund county/city-town/school/special taxing district levies and is subtracted when determining tax capacity value used to calculate the local tax rate. The Fiscal Disparities program affects tax calculation on a C/I property. It is subject to a uniform metrowide tax rate on a portion of the value. In Washington County, this rate is higher than local rates. 52

53 Adjustments to Tax Capacity Base Power Line Credit 10% of the value of Power Lines >200 KV built after 7/1/1974 is excluded from the tax capacity value used to calculate the local tax rate. The tax generated by the excluded value is used to fund the Power Line Credit that is given to the properties the line crosses over. 53

54 Tax Rate Calculation Property taxes are different from income taxes, where rates are set but the total amount raised is unknown. With property taxes, the amount to raise is determined and a rate is calculated that raises exactly that amount, no more. Stable revenue source, no deficits or windfalls. 54

55 Tax Rate Calculation Taxing districts determine the amount of money they need to fund the services they provide. They subtract what will be funded by non-property tax revenue or state aids to determine the portion to be funded by taxpayers. They certify the levy amount to the County. The County subtracts the portion of the levy that will be funded from the fiscal disparity pool to come up with a local levy and calculates a tax rate for each taxing district: Local Levy Tax Base Value = Tax Rate 55

56 Tax Rate Calculation Each tax base has a different rate that applies County calculates both tax capacity based and market value based rates The Minnesota Department of Revenue calculates the State General Tax Rate and certifies to each county. The same rate applies statewide. 56

57 Tax Rate Calculation Budget: $500,000 State Aid/Other Revenue Sources: $50,000 Portion of Levy funded by Fiscal Disparities: $75,000 Total Tax Capacity Value: 1,000, Certified Levy = Budget State Aid/Other Sources $500,000 - $50,000 = $450, Local Levy = Certified Levy Fiscal Disparities portion $450,000 - $75,000 = $375, Tax Rate = Local Levy Value $375,000 1,000,000 = % 57

58 Tax Rate Calculation Tax rates are calculated for each taxing district: County Cities/Towns Schools State Metro Special Taxing Districts: Metropolitan Council, Transit District, Metropolitan Mosquito Control Other Special Taxing Districts: Watershed Districts, County HRA, City HRA/EDA, County Regional Rail The rate that applies to a parcel is the total of the rates of all taxing authorities it is located within sometimes referred to as a unique taxing area. 58

59 Unique Taxing Area Example Unique Taxing Area: Geographic area with the same set of tax rates that apply School District 123 City Watershed Metro Area County 59

60 Tax Calculation Taxes are calculated for each parcel of property: Tax Capacity Tax = Tax Capacity x Tax Capacity Rate Fiscal Disparity Tax = Fiscal Disparity Tax Capacity x Fiscal Disparity Rate (applies to C/I property only) Market Value Tax = Referendum Market Value x Market Value Rate (does not apply to farm land or cabins) State Tax = Tax Capacity x State Rate (applies to C/I and cabins) Total Tax = Tax Capacity Tax + Fiscal Disparity Tax + Market Value Tax + State Tax Credits are subtracted from the Gross Tax to arrive at the Net Tax Payable: Powerline Credit, Ag Preserve Credit, Ag Homestead Credit 60

61 Example of Residential Homestead Tax Calculation Step 1 - EMV = 250,000 Step 2 Calculate Homestead Exclusion: First x 40% = 30,400 Remainder of value (250, =174,000) x 9% = 15,660 30,400 15,660 = 14,740 Step 3 Calculate TMV 250,000 14,740 = 235,300 Step 4 Calculate Tax Capacity 235,300 x 1.00% = 2,353 Step 5 Calculate Tax Capacity Tax 2,353 x % = $2, Step 6 Calculate Market Value Tax 250,000 x % = $ Step 7 Calculate Total Tax before Special Assessments = Tax Capacity Tax + Market Value Tax Credits $2, $ = $3,

62 Example of Commercial/Industrial Tax Calculation Step 1 - EMV = 250,000 TMV = 250,000 Step 2 Calculate Tax Capacity 150,000 x 1.50% = 2, ,000 x 2.00% = 2,000 4,250 Step 3 Calculate Fiscal Disparity Portion of Tax Capacity 4,250 x % = 1,668 Step 4 Calculate Local Portion of Tax Capacity 4,250 1,668 = 2,582 Step 5 Calculate Tax Capacity Tax 2,582 x % = $3, Step 6 Calculate Market Value Tax 250,000 x % = $ Step 7 Calculate Fiscal Disparity Tax 1,668 x % = $2, Step 8 Calculate State Tax 4,250 x % = $2, Step 9 Calculate Total Tax before Special Assessments = Tax Capacity Tax + Market Value Tax +Fiscal Disparity Tax + State Tax $3, $ $2, $2, = $8,

63 Proposed Tax Notices - Truth in Taxation Process Taxing Authorities certify proposed levies to the county by September 15 (schools October 1). County calculates rates and taxes based on proposed levies. County mails a notice of proposed taxes to taxpayers between November Includes date and location of budget meetings. Local units are able to include an insert to provide additional information. Taxing authorities hold budget meetings on proposed taxes November 26 December 26. After receiving public input, taxing authorities set their final levies and certify to the county by December

64 Tax Statement Process Final levies are due December 28 County repeats the tax rate and tax calculation process using the final levies Special Assessments are included with the final taxes Special assessment certification is due November 30 Delinquent Utilities are due December 28 County mails tax statements by March 31 Mailed along with the value notice for the following year 64

65 Major Notices/Mailings to the Taxpayer Value Notice Mailed in March xxx1 Value on January 2, xxx1 for taxes payable in xxx2 Mailed along with Tax Statement for the prior year Notice of Proposed Taxes Mailed in November xxx1 Taxes that will be due in xxx2 if the tax authorities approve the levies they are considering Tax Statement Mailed in March xxx2 Taxes due in xxx2 Mailed along with Value Notice for the following year 65

66 Due Dates First half Property Taxes are due May 15 ($100 or less is due in full May 15) Second half Property Taxes are due October 15 Second half Ag is due November 15 Manufactured Homes are due August 31 and November 15 ($50 or less is due in full August 31) 66

67 What happens if tax is not paid on time? Reminder letters sent after first half/second half due date Penalty begins to accrue the day after the due date and the rate increases monthly throughout the current payable year. Any amount remaining unpaid on January 2 following the year the tax is due is subject to a 10% penalty on homestead property, 14% on non-homestead property. Starting in January the following year interest accrues in addition to unpaid tax and penalty. The current interest rate is 10%. 67

68 Collection and Distribution County collects taxes on behalf of all local taxing authorities and the state County periodically distributes collections back to the levying taxing authorities through the settlement process. July 5 (State of MN June), December 1, January 25. County distributes only what was collected, may not be full levy. Reasons for difference: Delinquencies Abatements/additions Tax Court ordered changes Collection rates are generally high; county average > 98% collected in the year of the levy 68

69 What if property taxes aren t paid? Process for new delinquent parcels each year: Letter mailed to taxpayer Publication in newspaper Court Judgment Redemption period: 3 years non-homestead or in a city 5 years homestead or in a township If taxes are not paid within the 3-5 year redemption period, the property will forfeit to the State of MN County manages tax forfeited land on behalf of the State 69

70 State Property Tax Refund Programs Regular Property Tax Refund Circuit Breaker Residential Homestead property Refund is based on income and property tax due Household Income must be less than$100,780 (2011) Maximum refund is $2,460 Special Property Tax Refund Residential Homestead property For property owners whose taxes increased more than 12% and the increase was over $100. The refund is 60% of the increase over 12%, to a maximum of $1,000. No income requirements. 70

71 Senior Citizen Deferral Program Allows taxpayers 65 or older with household incomes of $60,000 or less to defer a portion of the property taxes on their home. It limits the property taxes to 3% of household income. It is not a tax forgiveness program it is a low interest loan from the state. The State pays the deferred tax to the county. Interest is charged by the state. The rate is adjusted annually but will not exceed 5%. A lien attaches to the property. If property is sold or no longer qualifies, the deferred loan plus interest is due within 90 days. 71

72 Property Tax Myths Your value for property tax purposes should be significantly below what the property would sell for. Required to be between 90%-105%; county goal is 95% If property values go up, the county, city and other governments get more money. Value does not create the tax burden, it only distributes it. The only way taxing districts get more money is by increasing the levy. Value increases by themselves do not increase the total amount of taxes raised (although they can raise taxes on individual parcels). 72

73 Property Tax Myths If property values go down, the county, city and other governments get less money. Value does not create the tax burden, it only distributes it. The only way taxing districts get less money is by decreasing the levy. Value reductions by themselves do not decrease the total amount of taxes raised (although they can decrease taxes on individual parcels). My value went down so my taxes should go down. Value reductions do not necessarily lead to tax reductions. Depends on levy changes and how the value change compared to other parcels. If all parcels had the same value reduction and the levy did not change, there would be no change in tax. 73

74 Reasons for Tax Changes Change in taxing district levies Change in the parcel s classification Change in the parcel s value How does the value change on the parcel compare to the value change on other parcels, did it go up or down more or less than average? Change in the total value (tax base) of taxing districts Homestead value exclusion increases as the value decreases/decreases as the value increases Law changes such as changes in class rates 74

75 Impact of Value Changes on Distribution of Tax Burden 75

76 In Summary: 76

77 Possible Legislative Initiatives A Property Tax Working Group was established by the Legislature in Their goal is to examine ways to simplify and improve the state s property tax system. Report to Legislature due February 2013 Draft Working Group final report is on Minnesota Department of Revenue website: 77

78 Billions - Market Value Millions - Tax Capacity County Value Trends 35 Estimated Market Value Taxable Market Value Tax Capacity used to calculate Local Tax Rate Taxes Payable Year 0 78

79 Reductions from Pay 2013 Estimated Market Value 79

80 Pay 2013 Value vs. Tax by Class Estimated Market Value 9% 5% 3% 14% Taxable Market Value 9% 3% 3% 15% Agricultural/Rural Apartment 70% 69% Commercial- Industrial-Utility Tax Capacity 8% 2% 3% 25% 7% Tax 2% 3% 33% Residential- Homestead Residential- NonHomestead 60% 55% 80

81 Where does each tax dollar go? County Cities/Towns Schools State TIF Other

82 Timeline of Property Tax Process Assessment Year 2011, Taxes Payable 2012 Source: Final Report of the Property Tax Working Group, February

83 Links & information and Taxation>Property Tax Section for Property Tax Administrators 83

84 Links & information County provides a Tax Impact Worksheet spreadsheet to assist taxing authorities in estimating the tax impact of proposed levies on residential homestead taxpayers. Spreadsheet has all the formulae for tax rate calculation and tax calculation, taxing authority just has to enter a levy amount and select the values of homes to calculate for. The spreadsheet can be found under the Tax Impacts section. 84

85 Links & information and Taxation>Property Tax We also include links to other sites 85

86 Questions?? 86